Relocating your business can involve some critical considerations. Everything from demographics, foot traffic, competition, and accessibility to your customer base can influence the success of your business, and all of these factors are associated with location.
Conducting location research and careful advance planning are the keys to making an informed decision when relocating your business. Look at a few guiding pieces of advice to consider as you plan to relocate your operation.
Factors to Consider When Selecting a Location
Before narrowing down a potential geographic location for your business, consider factors about any prospective location, like:
- Target audience and demographics: Will the location create accessibility to your intended customers?
- Foot traffic and visibility: How likely will your target audience find you at the new location?
- Competitor proximity: Are there any competitors in the area that could impede your profitability?
- Accessibility and parking: Does the property offer enough parking space for your average flow of customers and employees? Does the property support customer accessibility?
- Zoning and regulations: Are there zoning restrictions that would prevent you from managing business as usual?
- Costs and lease terms: Does the cost of the place align with your budget? Are the lease terms suitable for your future plans?
Researching and Analyzing Potential Locations
In addition to the general factors to consider about a proposed business location, going more in-depth with research and analysis is important. For example, use tools like Gale Business Demographics to closely examine reports associated with Census data and even retail spending in a given location. Likewise, if you find a competitor in a certain area that you are considering relocating your business to, thoroughly evaluate that business and its health. Could you perform better by offering a different level of service? Or, could your business be more profitable with a more attractive marketing plan?
Pitfalls to Avoid During Business Relocation
There are several common mistakes businesses make when choosing a location. However, you can work to avoid them as you pick the most attractive location. A few of the most common pitfalls to avoid when relocating your business and choosing the best location include:
- Not doing enough research into area demographics to know there will be enough area interest in your product or services
- Not analyzing lease terms and how they could affect your business down the road
- Not analyzing how locale costs could interfere with business profitability
- Not considering how the relocation will affect your workforce or the potential pool of employees to choose from
The Importance of Local Networking and Community Engagement
Relocating a business is not a small feat by any measure. However, once you are moved, part of your work is just beginning because it now becomes important to engage with the local community and build relationships with prospective customers. Therefore, ensure any location you choose provides opportunities to network and connect.
Indeed offers a reliable collection of tips for business owners looking to network meaningfully, such as offering to assist organizations within the community and being proactive about joining local organizations. As you consider certain locations, think about how that location will support networking and engagement.
Get the Guidance You Need for Your Business Relocation
With many factors likely to affect your business relocation, staying focused on what’s important is vital. As you make all the plans, consider bringing in the help of a full-service office moving company to help you navigate. Reach out to discuss your needs with one of our team members.
FAQs
Most businesses choose a location that will provide exposure and drive foot traffic or volume to their location. That makes features like parking, pedestrian and vehicular access, the reputation of the neighborhood, and the proximity of other businesses all factors to consider.
Why choosing the right location is important in business? ›
The location you choose for your business influences a host of crucial factors – from visibility to potential customers to operational costs and ease of accessibility to overall profitability.
What impact does location have on a business? ›
Location plays a huge role in attracting and retaining the best employees, many of whom keep a close eye on where they're based in order to optimize work-life balance. Good location decisions can significantly boost a company's long-term performance. Poor ones can cost millions in lost talent, productivity and capital.
Does location matter for small business? ›
Choosing the best location for your business is crucial to your overall success, so it's important to do the necessary research before committing to a location. Be sure to think about your location not only as a business owner, but also from the point of view of an employee and potential customer.
How do I choose the right location for my business? ›
8 business location factors to consider
- Geographic location. Firstly, your business location needs to be in an area that positions you in close proximity to your target market. ...
- Operational needs. ...
- Rent cost. ...
- Security. ...
- Competition. ...
- Growth potential. ...
- Accessibility.
You and your employees should find a business location that all of you will like. Also look at it from the standpoint of a potential customer or client. If you want to grow your business and serve your clients or customers successfully, you need to find a location with the right structure.
Why is the location or site so important for a business? ›
The bottom line is that the state in which your business sets up its operations can impact many factors that determine success. Consumer demographics, the industry landscape, taxes and regulations, the talent pool, and the cost of living are all essential considerations.
What are the 5 factors that you have to consider when choosing a location? ›
These location factors will help you decide whether or not a community is ideal for your business:
- Market and Demographics. It's important to know who your ideal customers are when choosing a business location. ...
- Traffic. ...
- Accessibility. ...
- Competition. ...
- Costs. ...
- Growth Potential.
The wrong location can lead to high costs, a lack of talent, and a lack of customers. The right location can provide access to capital, a skilled workforce, and a large market. There are a number of factors to consider when choosing a location for your startup. The most important factor is the market.
How does a business choose its location? ›
Your business location doesn't just need to work for your customers. It needs to work for your employees as well, including how easy it is to get to, and how safe it feels. And just as you would keep in mind your target customer when selecting a business location, you should also factor in your target employee.
Some of them are: raw material, land, water, labor, capital, power, transport, and market. For ease of convenience, we can classify the location factors into two: geographical factors and non-geographical factors.
Why is location strategy important? ›
Having a good location strategy allows you to obtain the optimal location aligned to your organization's needs and objectives, one that allows your firm to maximize opportunity while minimizing costs and risks.
What is the major factors affecting location decision? ›
There are many supply and demand factors that affect location decisions including labor costs, land costs, energy and transport costs, customer convenience, labor skills, site suitability, and image.
Why are location decisions considered strategically important? ›
Location decisions are considered as strategic decisions as they have long term impact on profitability of an organization. Most of the location decisions are irreversible.
Why is location important in business essay? ›
Location is important to a business because it can impact factors such as customer accessibility, cost of operations, and proximity to suppliers and markets. Decision Support System to Target Suitable Area of Industry based on Evidential reasoning Approach.
What are the benefits of choosing the right location among retailers? ›
Choosing the best location for your retail store is one of the most important decisions you will make as a business owner. The right location can attract customers, boost sales, and enhance your brand image. The wrong location can cost you money, time, and reputation.
